Profits soar at Springfield Properties

Housebuilder Springfield Properties has increased revenue in its private housing and affordable divisions, with profit before tax across it operations soaring by 97%.

Announcing its interim results for the six-month period ended 30 November 2018 yesterday, the AIM-listed firm said revenue for the half-year increased to £75.7 million, a 38% increase on the first half of their 2017/18 year. Profits rose 97% from £3.1m to £6.1m in the period.

Profits soar at Springfield Properties

(from left) Financial director Michelle Motion, executive chairman Sandy Adam and CEO Innes Smith

Springfield grew its landbank by 2,620 plots to 15,096 in the first half, of which 32% have planning permission. Net debt stood at £25.3m.

Sandy Adam, executive chairman of Springfield Properties, said: “In announcing this set of interim results, I am pleased to be reporting a further period of strong growth for Springfield. We have increased revenue from both private and affordable existing sites, and have done this at a faster rate than for the same period last year.

“Looking forward, we have entered the second half of the year with a strong order book of contracted revenues and a greater geographic reach across Scotland. With the sustained market drivers showing no sign of abating, Springfield is in a stronger position than ever to deliver many of the new private and affordable homes needed in Scotland.”

Dawn Homes – the Glasgow housebuilder acquired by Springfield last year in a deal worth up to £20.1m – “performed strongly”, while recent acquisition Walker Group – snapped up for £72.4m a few weeks ago in another central belt expansion – is also expected to fuel future growth.

Innes Smith, chief executive officer of Springfield Properties, said: “Springfield made great progress during the first half of the year, with sales increasing in both of our divisions and total completions up 35 per cent at 379 new homes. Our investment last year in the acquisition of Dawn Homes and our four high calibre managing directors has greatly strengthened our business.

“We are benefiting from their complementary skillsets and experience, and we’re very pleased that all of the great people at Dawn have chosen to remain with the group. This also gives us confidence that our recent acquisition of Walker Group, another established company with a strong product and reputation, will be an equal success. This bulk addition to our land bank also gives us very good visibility in our three-year projections. We look forward to delivering on our targets and continuing to grow our business.”

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